The word out of Baton Rouge, LA is very upbeat for those who are interested in gambling. Players should rejoice over the nearly 13% annual increase in casino gambling revenues. This amount reflects only casino gambling as does not take lottery or other facets of gambling into account.
Some might assume only those involved with the business of gambling are going to be thrilled over the reports. True, the customers sometimes do not see how the increases are beneficial. Actually, there are a number of ways the numbers do good for players. More enticements (deals, specials, and promotional offers) find their way directed towards customers. New and more enthusiastic gambling-related businesses open. Choices expand. Yes, there are scores of ways the average gambler does get a good deal from the increase in gambling revenue.
And yes, of course, those involved in the gambling industry are rejoicing as well. A 12% increase in profits is a stratospheric number. The figure is even more impressive considering the tepid economic news that has marred 2015. Professionals involved in the gambling industry may be feeling the ceiling has not even come close to being reached. As a result, the earnings potential from the various wagering endeavors could set new records within the state.
The lawmakers and government officials are sure to be really thrilled with these profit numbers. State budgets are notoriously difficult to balance. Concerns always exist regarding where the money is going to come from. Not every state has legalized gambling. Those that do are able to draw in a significant amount of funds to help cover some budget-related costs.
Louisiana does have a rather extensive gambling industry present within its borders. The Harrah’s Casino is probably the most well-known one on land, but the four racetrack casinos in the state also draw in a decent amount of regular players. And then there is riverboat gambling. Riverboat gambling is wildly popular and the number of riverboat gaming venues tops out at 15.
As of September 2014, the combined earnings from all these casinos is $206.1 million. In September of 2014, the figure was “only” $182.8 million. The actual increase is 12.8%, a hefty and healthy number. Will the numbers continue to rise? There are various factors that have to come into play to contribute to further increases. A boost in the local economy would be one. Increased tourism to the state would be another. In terms of risks for the bottom falling out on the casino industry, the chances of this every occurring are extremely rare.
The various cities within the state of Louisiana that are home to gambling endeavors do report a varied array of different profits margins and increased revenue. The populace city of New Orleans, not surprisingly, say a solid increase in September. The increase has in the 4% range and the Harrah’s Casino and resident riverboats contributed to the figure. Other localities in the state of Louisiana such as Shreveport and Baton Rouge also saw numbers increase, but not at the same level as New Orleans. A big city with a big airport is just going to have an edge over smaller cities. That said, the growth figures in Shreveport and Baton Rouge do reflect positive news.
Probably the most impressive figure of all is the one that emerges from the Lake Charles area. Lake Charles saw an annual increase in winnings go up by a staggering 38.3%. That is a massive figure and one that can be easily explained. The Golden Nugget Casino recently opened its doors in Lake Charles. Of course, the figure for winning is going to go up. There is a brand new casino that did not exist before.
This is not to diminish the important arrival of a brand new casino and its gross winnings in any way. A new business means more commerce and revenue. People who are following the gambling industry do have to realize that the 38+% figure is not going to be there next year because the Golden Nugget could not possibly grow fast enough to deliver the city the same average. So, the number will “drop” next year when things level off. It will take a few years to get a clear picture of the long-term economic strength of the Golden Nugget Casino.
One other point does have to be made here. The 38% figure refers to winnings taken in by the casinos in Lake Charles. This is not a figure that reflects profits. Revenue is reflective of the money taken in by the casinos. No one is keeping track right now of the money going out. The casino has numerous bills to pay. Marketing, salaries, repairs, taxes, maintenance, legal fees, and other liabilities necessitate the payment of bills. The profit margins are going to be the net revenues minus the expenses.
It goes without saying the higher the revenue figures, the greater the potential for the casinos to stay in the profit realm. Unless one is directly looking at the books of a casino, arriving at an answer for how large of a profit a casino is earning is speculative at best.